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This paper describes a fault location algorithm for three terminal lines using wavelet transform of the fault initiated transients. The results presented in are extended to the case of three terminal configuration and a new single ended procedure is developed for teed circuits. The algorithm gives accurate results for the case of three terminal lines including series compensated branch, mutual coupled line section and different values of fault resistances. The performance of the algorithm is tested on different scenarios by using ATP/EMTP program and MATLAB Wavelet Toolbox.